Employee Business Expenses IRS Tax Tip 2012-54

Some employees may be able to deduct certain work-related expenses. The following facts from the IRS can help you determine which expenses are deductible as an employee business expense. You must be itemizing deductions on IRS Schedule A to qualify. Expenses that qualify for an itemized deduction generally include: • Business travel away from home • Business […]

IRS Offers Tax Tips for Taxpayers with Foreign Income

The Internal Revenue Service reminds U.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2011, that they may have a U.S. tax liability and a filing requirement in 2012. The IRS offers the following seven tips for taxpayers with foreign income: 1. Filing deadline […]

Tax Rules May Affect Your Child’s Investment Income

Parents may not realize that there are tax rules that may affect their child’s investment income. The IRS offers the following four facts to help parents determine whether their child’s investment income will be taxed at the parents’ rate or the child’s rate. 1. Investment income Children with investment income may have part or all […]

Health Insurance Tax Breaks for the Self-Employed

If you’re self-employed and paying for medical, dental or long-term care insurance, the IRS wants to remind you about a special tax deduction for some insurance premiums paid for you, your spouse, and your dependents. Starting in tax year 2011, this deduction is no longer allowed on Schedule SE (Form 1040), but you can still […]

Six Tips for Reducing Tax-Time Stress

Tax preparation doesn’t need to give you a headache. There are several ways to make it easier on yourself. The IRS offers six tips to help make your tax-filing experience a breeze this year. 1. Don’t procrastinate. Resist the temptation to put off your taxes until the very last minute. Rushing to meet the filing […]

Tax Credits Available for Certain Energy-Efficient Home Improvements

Item #2, Residential Energy Efficient Property Credit has been corrected to replace an erroneous reference that geothermal heat pumps qualify only when installed on or in connection with a taxpayer’s main home located in the United States. The error was in limiting the credit to the taxpayer’s main home. Qualified geothermal heat pumps that are […]

TAC Service Changes for the 2012 Filing Season

Beginning this year, IRS Taxpayer Assistance Centers generally will not accept bulk returns for processing and mailing, particularly when it affects taxpayer services. The IRS hopes to eliminate the practice of taxpayer representatives dropping off completed returns for processing, especially during peak operating periods. The intent of this policy change is not to limit assistance […]

Work at Home? You May Qualify for the Home Office Deduction

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. The IRS has the following six requirements to help you determine if you qualify for the home office deduction. 1. Generally, in order to claim a business deduction for your home, you […]

New IRS Fresh Start Initiative Helps Taxpayers Who Owe Taxes

The Internal Revenue Service has expanded its “Fresh Start” initiative to help struggling taxpayers who owe taxes. The following four tips explain the expanded relief for taxpayers. Penalty relief Part of the initiative relieves some unemployed taxpayers from failure-to-pay penalties. Penalties are one of the biggest factors a financially distressed taxpayer faces on a tax […]

Six Facts About the Alternative Minimum Tax

The Alternative Minimum Tax attempts to ensure that anyone who benefits from certain tax advantages pays at least a minimum amount of tax. The AMT provides an alternative set of rules for calculating your income tax. In general, these rules should determine the minimum amount of tax that someone with your income should be required […]